Andres Gujan and Dominique Sekyra appear on the Impact Leaders Podcast

Episode #27 of the Impact Leaders Podcast is a panel conversation with our very own Andres Gujan and Dominique Sekyra. The topic... "Combining good with the usefull: impact investing in energy & resource efficiency.

The podcast can be listended to and shared here.

Highlights include:

“We don’t buy sustainability reports, we buy good companies”

“At the time there were a lot of sustainable funds around, but we thought that these funds were not that sustainable. Because sustainability is also a financial aspect. A lot of these funds disappeared because they were investing in business models that were not sustainable in the end. So companies that went basically bust.”

Carnot capital has two well established funds - Carnot Efficient Energy Fund and Carnot Efficient Resource Fund.

They also recently launched a circular economy index together with Bank Vontobel. Investing in established companies with products and services in industrial, transport and buildings technology, rather than energy transition into renewables. They also invest in resource efficiency such as food sector for example fisheries, agriculture, clean air and clean water.

“And only if you ask those specific questions, you actually drill a little bit deeper than the usual biannual analyst call which is mainly very financial heavy, and governance heavy. We are able to ask a different set of questions to competing funds and that is our edge.”

There is a lag between how rating agencies analyse these companies and how we interpret these companies with dialogue and deeper research and ESG ratings.

Heatmaps of aggregation of the portfolio companies and SDG impact

“In our experience, it is impossible to do impact investing without being an active investor.”

“I think there will be two streets, two avenues. Either you analyze everything, and you analyze it with not enough depth or granularity, or you focus like us on a specific sector or even a specific portfolio.”

How partnerships with banks can scale impact investing -1) create actively managed certificates and create derivatives themed around resource funds 2) traditional managed accounts where they pick out the best qualities from niche impact investors

The challenges of climate change and resource scarcity will still be around after the coronavirus crisis.

The podcast can be listended to and shared here.

 

 

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